It industry buttoned down outshone striking consumer Internet startups on fundraising in the first quarter, a big increase in venture capital investment in the US, especially in software companies.
Capitalists invested US $ 2 billion in 257 deal with young IT companies in the quarter, according to the quarterly survey by Dow Jones VentureSource. That marked the 14 percent increase in dollars and a 2 percent increase in the number of transactions compared to the first quarter of 2011, so that only large industry where both figures go up.
Instead, investors are believed to be 76 per cent less money for consumer Internet companies, at 17 percent fewer deals, than they did the previous year. The segment was pulled the $ 375 million in 88 deals in the first quarter, according to VentureSource. The survey noted that one of the major reasons for the drop may be strong quarter a year earlier, when the company hot like Zynga and LivingSocial raises large amounts of money: $ 870 million between them both. Zynga has since gone public.
In the arena, the software company took the most investment, making 196 deals for a total of $ 1.3 billion. It is 6 percent more deals and 61 percent more money than the previous year. Application software business consists largely of that category, according to Jessica Canning, global research director at Dow Jones VentureSource.
Business technology companies in at least two categories are doing well in business during the quarter. trench The second largest funding round in all the software is Appirio, which sells technology to help companies take advantage of cloud-based services. But there is also a big advantage in the IT field that classifying under VentureSource support services business. For example, the funds raised by the company’s security information such as Symantec grew from $ 28 million to $ 135 million, and project and document collaboration company pushing their fundraising of $ 2.5 million to just over $ 100 million, canning said.